Early Registration ERISA troubles

According to the law, Employers statewide must register a retirement plan with the State of Oregon on the state mandated schedule. Recently OregonSaves, the state-run program has announced they are opening registration to all employers ahead of schedule. But just because you can sign up early, should you?

When OregonSaves was created, the Oregon Treasury obtained a waiver from ERISA requirements from the United States Department of Labor. ERISA is the Federal law governing multiple aspects of retirement plans. While that opinion was later rescinded, Oregon has forged ahead without the waiver.

With the ERISA protection removed, and employers electing to participate in a retirement plan that is not yet mandated and does not comply with ERISA, the question is raise: Does early adoption of Oregon Saves, by itself, constitute an ERISA violation? This is an issue your legal advisor should review before you commit to adopting the Oregon-run plan.